The Puzzle of China's Township¥VVillage Enterprises: The Paradox of Local Corporatism in a Dual-Track Economic Transition
Abstract
This paper seeks to reconcile and synthesize the diverse views about the township¥Vvillage enterprises (TVEs) and local corporatism in the context of ongoing institutional changes in China as a transition economy. Specifically, I attempt to integrate the economic, political, cultural, and social explanations for TVEs, especially the two competing views of market competition and political corruption. I focus on the puzzle of TVE efficiency as well as the paradox of local corporatism as a government¥Vbusiness partnership with both a positive function of public alliance for wealth creation and a negative function of private collusion for wealth transfer. I argue that the key to both the puzzle of TVEs and the paradox of local corporatism lies in China's dual-track reform paradigm (i.e. a market-for-mass track and a state-for-elite track). Lastly, I discuss the critical implications for theory building and policymaking regarding economic transition in general.Download Info
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Bibliographic Info
Article provided by International Association of Chinese Management Research in its journal Management and Organization Review.
Volume (Year): 1 (2005)
Issue (Month): 2 (July)
Pages: 197-224
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Web page: http://www.iacmr.org/
Related research
Keywords: Business Ethics; China; Chinese Context; Corruption; Duality; Duality Lens; Economic Reform; Formal Institutions; Guanxi; Information Institutions; Institutional Change; Institutional Environment; Institutional Transitions; Interpersonal Networks; Local Corporatism; Local Government; Reform; Systemic Corruption; Township-village Enterprises; Transitional Economy;Find related papers by JEL classification:
- M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General
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